I don't see how a contract you discribe would work. By the time the person enters an AL they maybe in the early stages of Dementia. Not able to make a contract. POA involved, does that person have to honor such a contract? The house may need to be sold for the person's care. As such, it needs to be at Market Value if Medicaid will be needed within 5 years or there will be penalties.
I think if you do something for someone and payment is involved, paperwork needs to be made up at the time you are helping. When it comes to a house, it could have been arranged a head of time that the neighbors get it when the person enters care. But, Medicaid laws don't always allow what State laws do. As in gifting money. IRS allows 15k a year tax free (that amt may have increased). Medicaid law sees it as "gifting" and penalizes for it.
If friend was in an AL there was not much "caring" on his part. Maybe visit and make sure he has his toiletries, Depends, some snacks. The AL could supply transportation to the doctor. Any money spent, should come out of the principles pocket.
Cleaning out the house...should have kept number of hours put in. Should be no out of pocket money because the principle should be paying.
If a house was promised then paperwork should have been drawn up when the POA was assigned at least. If the POA says nothing about compensation, there isn't any.
I don't think your friend will be able to get reimbursed without something in writing. The Will can not be changed. If no Will the State determines who inherits and it probably be the children. By cleaning out the house, your friend could be accused of stealing.
I would not give anyone the keys unless they prove they are executor or Administer. Probate will give them a "short certificate" to handle your friends estate.
Countrymouse has an EXCELLENT write up for you. I would stress the part about the person who had POA needing to have meticulous records of every penny in and every penny out of the elder's accounts. This is a fiduciary duty when you are acting financially for another. Should also have proof of payment, any gifting that was done, tax forms to prove same and etc. If this friend wasn't aware of how to act as POA it is important to know that this is a legal fiduciary duty under which ignorance of the law is no excuse. In any action then, the children would win a court suit. As to payment, that is almost impossible to get after an elder has passed, in ANY court action, which is why contracts and files and records are so important at the time. A timeline created after the fact isn't going to go very far to prove anything.
Nik, if his kids didn't have any contact with their dad since the 80s, how did they contact his POA 2 days after death? That seems like there was some type of contact or they would not have known of his death that quickly.
Do you really believe that helping someone that is living in AL, per your profile, for 1 year justifies an entire house for payment?
I am not saying it does or doesn't but, that is something a Judge is going to question. Because anything done has to be billed at the going rate, you can't charge 300.00 an hour when an outside party can be hired for 30.00.
I live in AZ and verbal contracts are enforceable when you can prove that one party fulfilled their side of the agreement. I mean a contract is nothing more then a mutually agreed upon document of action(s). You do x, I pay you y. With lots of cover your backside jargon in between.
Best of luck getting fairly compensated for helping this man in his hour of need.
To do the timeline, ignore the children for a start.
1. The gentleman's circumstances. E.g. Mr Smith had lived alone in his house for xty years. In 20xx he was diagnosed with xxx but continued to manage independently until 20xx when his deteriorating health made him unable to do xyz.
2. Mr Friend was aware of Mr Smith's circumstances because... [explain what you mean by the "family friend" relationship]. Initially Mr Friend offered informal support with xyz, but it became increasingly clear that Mr Smith would need more regular and structured support.
3. From [date] Mr Smith and Mr Friend reached an understanding that [whatever they agreed between them]. Mr Smith created a power of attorney enabling Mr Friend to act for him from [date]. Incidentally, I hope your friend will be able to account for everything he did using that POA.
4. List or itinerary or journal of regular and/or specific tasks, appointments or routines that Mr Friend undertook on Mr Smith's behalf.
5. Schedule of expenses incurred by Mr Friend wholly and exclusively for Mr Smith's benefit.
6. Summary of what Mr Friend is asking for as compensation.
It's not a forlorn hope that your friend should be reimbursed for anything that this caregiving gig actually cost him. It's a fainter hope that the gentleman's children out of shame or charity will offer him compensation for his time and trouble, and by the way that won't be helped by any suggestion that your friend was making moves to get his paws on the property. If your friend was motivated by compassion, why the paperwork? And if he was motivated by verbal promises that he'd get the house, he kind of loses the argument about who's being mercenary.
Still, good luck with it. If you don't ask you don't get and he certainly deserves some kind of recognition, I'd have thought. Ask nicely and see what happens - what's to lose?
Not to pick on you, I don't recall the name of the case, but I do the facts because I won the argument with the Contracts professor over it. I think it relates because we never considered it mercenary to have promise of a house or promise of right to buy the house due to a kept promise of caring for the homeowner (errands, housework, shopping, handyman tasks, etc). But it could be. There are a lot of gold diggers out there that prey.
Here's the case. An elderly lady needs all the above help time to time, which neighbors provide. One day Owner states if Neighbors continue to provide the same services and care, Owner will enter into a contract with them for the house once she's ready to go into assisted living or other managed care. This happens all the time. This one they would pay for the home, a reasonable price, hopefully marked down in return for the expenses they incurred, applicable or not to the contract. While here, it appears the whole house is a gift.
In our case it was a unilateral contract (if you continue to take care of me), that contained a bilateral contract (I will then negotiate an agreement for a reasonable price you can buy the house for).
Interesting is that SoF dictates a contract for the sale of a home needs to be in writing. But the verbal agreement to negotiate the sale or transfer could be a binding agreement, but it's an agreement to negotiate. The agreement that binds the transfer of the home must be in writing. Honestly, I have not considered this scenario, so will have to ruminate a little on oit. What do you think? Would a court enforce a verbal agreement to negotiate a reasonable price or a reasonable exchange (which could mean no cost transfer if the work was sufficient by the transferee).
Unless they left a will which states everything belongs to you, you will get nothing. I think it will be difficult to prove the caregiving you provided and if you weren't paid for doing it, it is unlikely you will get any money.
I see comments like this regularly on here and hope people start to understand that inheritance will go to family, unless there is a will stating otherwise. If you want to be a caregiver, get paid to do it while they are alive. Even with family, don't ever assume someone else will understand the time invested as a caregiver and give you a larger percentage of any inheritance, it rarely if ever happens.
After an unrelated person that there was no contract with is deceased I’d say it will be a huge uphill battle to get money for previous caregiving. And I’d be suspicious of a lawyer saying it’s doable, make very sure you aren’t paying this lawyer upfront.
Call APS and report the senior as abandoned or neglected and ask for wellness check and welfare check. Are you any relation to this senior? You need not to take on care, as a friend. If there is no family for Social Workers to contact then the state will take on care.
I don't see how a contract you discribe would work. By the time the person enters an AL they maybe in the early stages of Dementia. Not able to make a contract. POA involved, does that person have to honor such a contract? The house may need to be sold for the person's care. As such, it needs to be at Market Value if Medicaid will be needed within 5 years or there will be penalties.
I think if you do something for someone and payment is involved, paperwork needs to be made up at the time you are helping. When it comes to a house, it could have been arranged a head of time that the neighbors get it when the person enters care. But, Medicaid laws don't always allow what State laws do. As in gifting money. IRS allows 15k a year tax free (that amt may have increased). Medicaid law sees it as "gifting" and penalizes for it.
Cleaning out the house...should have kept number of hours put in. Should be no out of pocket money because the principle should be paying.
If a house was promised then paperwork should have been drawn up when the POA was assigned at least. If the POA says nothing about compensation, there isn't any.
I don't think your friend will be able to get reimbursed without something in writing. The Will can not be changed. If no Will the State determines who inherits and it probably be the children. By cleaning out the house, your friend could be accused of stealing.
I would not give anyone the keys unless they prove they are executor or Administer. Probate will give them a "short certificate" to handle your friends estate.
If this friend wasn't aware of how to act as POA it is important to know that this is a legal fiduciary duty under which ignorance of the law is no excuse. In any action then, the children would win a court suit.
As to payment, that is almost impossible to get after an elder has passed, in ANY court action, which is why contracts and files and records are so important at the time. A timeline created after the fact isn't going to go very far to prove anything.
Do you really believe that helping someone that is living in AL, per your profile, for 1 year justifies an entire house for payment?
I am not saying it does or doesn't but, that is something a Judge is going to question. Because anything done has to be billed at the going rate, you can't charge 300.00 an hour when an outside party can be hired for 30.00.
I live in AZ and verbal contracts are enforceable when you can prove that one party fulfilled their side of the agreement. I mean a contract is nothing more then a mutually agreed upon document of action(s). You do x, I pay you y. With lots of cover your backside jargon in between.
Best of luck getting fairly compensated for helping this man in his hour of need.
1. The gentleman's circumstances. E.g. Mr Smith had lived alone in his house for xty years. In 20xx he was diagnosed with xxx but continued to manage independently until 20xx when his deteriorating health made him unable to do xyz.
2. Mr Friend was aware of Mr Smith's circumstances because... [explain what you mean by the "family friend" relationship]. Initially Mr Friend offered informal support with xyz, but it became increasingly clear that Mr Smith would need more regular and structured support.
3. From [date] Mr Smith and Mr Friend reached an understanding that [whatever they agreed between them]. Mr Smith created a power of attorney enabling Mr Friend to act for him from [date]. Incidentally, I hope your friend will be able to account for everything he did using that POA.
4. List or itinerary or journal of regular and/or specific tasks, appointments or routines that Mr Friend undertook on Mr Smith's behalf.
5. Schedule of expenses incurred by Mr Friend wholly and exclusively for Mr Smith's benefit.
6. Summary of what Mr Friend is asking for as compensation.
It's not a forlorn hope that your friend should be reimbursed for anything that this caregiving gig actually cost him. It's a fainter hope that the gentleman's children out of shame or charity will offer him compensation for his time and trouble, and by the way that won't be helped by any suggestion that your friend was making moves to get his paws on the property. If your friend was motivated by compassion, why the paperwork? And if he was motivated by verbal promises that he'd get the house, he kind of loses the argument about who's being mercenary.
Still, good luck with it. If you don't ask you don't get and he certainly deserves some kind of recognition, I'd have thought. Ask nicely and see what happens - what's to lose?
Not to pick on you, I don't recall the name of the case, but I do the facts because I won the argument with the Contracts professor over it. I think it relates because we never considered it mercenary to have promise of a house or promise of right to buy the house due to a kept promise of caring for the homeowner (errands, housework, shopping, handyman tasks, etc). But it could be. There are a lot of gold diggers out there that prey.
Here's the case. An elderly lady needs all the above help time to time, which neighbors provide. One day Owner states if Neighbors continue to provide the same services and care, Owner will enter into a contract with them for the house once she's ready to go into assisted living or other managed care. This happens all the time. This one they would pay for the home, a reasonable price, hopefully marked down in return for the expenses they incurred, applicable or not to the contract. While here, it appears the whole house is a gift.
In our case it was a unilateral contract (if you continue to take care of me), that contained a bilateral contract (I will then negotiate an agreement for a reasonable price you can buy the house for).
Interesting is that SoF dictates a contract for the sale of a home needs to be in writing. But the verbal agreement to negotiate the sale or transfer could be a binding agreement, but it's an agreement to negotiate. The agreement that binds the transfer of the home must be in writing. Honestly, I have not considered this scenario, so will have to ruminate a little on oit. What do you think? Would a court enforce a verbal agreement to negotiate a reasonable price or a reasonable exchange (which could mean no cost transfer if the work was sufficient by the transferee).
I see comments like this regularly on here and hope people start to understand that inheritance will go to family, unless there is a will stating otherwise. If you want to be a caregiver, get paid to do it while they are alive. Even with family, don't ever assume someone else will understand the time invested as a caregiver and give you a larger percentage of any inheritance, it rarely if ever happens.